Municipals improve as secondary action picks up; Connecticut upsizes G.O.s to $559.44 million

By Sheri Kasprzak

New York, Nov. 20 – Municipals improved on the session on Thursday as secondary activity picked up from recent levels, market insiders reported.

Yields were better, but didn’t quite surpass better Treasuries, a trader said. Yields outside of 30-years were seen about 2 basis points lower, with shorter bonds seen lower by about a basis point.

As Treasuries rallied early in the day, municipals followed along, but those gains dissipated as Treasuries lost ground later in the day, said a trader.

For comparison’s sake, the 30-year bond yield fell by 3 bps, while the 10-year note yield fell by 2 bps.

Connecticut brings G.O.s

Heading up the day’s primary action, the State of Connecticut sold $559,435,000 of series 2014 general obligation bonds. The offering was slightly upsized from $550 million.

The offering included $240 million of series 2014F G.O. bonds, $60 million of series 2014G green bonds and $259,435,000 of series 2014H taxable G.O. refunding bonds, said pricing sheets.

The 2014F bonds are due 2015 to 2034 with 1.5% to 5% coupons. The 2014G bonds are due 2028 to 2031 with 3.25% to 5% coupons. The 2014H bonds are due 2016 to 2025 with 3% to 5% coupons.

The bonds were sold through senior manager J.P. Morgan Securities LLC.

Proceeds will be used to finance various state projects, including clean water projects, as well as to refund outstanding bonds.

Huntington Memorial bonds trade

Looking to secondary activity, the California Statewide Communities Development Authority’s recently priced bonds for Huntington Memorial Hospital were seen trading higher on the session.

The 4% 2039 bonds were seen trading Thursday at 3.937% after pricing Wednesday at 4.11%.

The bonds priced on Wednesday through Barclays, and proceeds from the deal will be used to redeem existing bonds.

Miami-Dade aviation deal ahead

Moving to upcoming deals, Miami-Dade County, Fla., announced plans on Thursday to price $749.57 million of series 2014 aviation revenue refunding bonds.

The sale includes $608,215,000 of series 2014A AMT bonds and $141,355,000 of series 2014B non-AMT bonds, a preliminary official statement said.

The bonds (/A/A) will be sold on a negotiated basis with Wells Fargo Securities LLC as the senior manager.

The 2014A bonds are due 2015 to 2034 with a term bond due in 2036. The 2014B bonds are due 2015 to 2034 with a term bond due in 2037.

Proceeds will be used to refund the county’s series 2002A, 2003A, 2004A-B, 2005C and 2007D aviation revenue bonds.

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